NewsPresident challenges Prime Minister on government price control measures

President challenges Prime Minister on government price control measures

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Montenegrin President Jakov Milatović has intensified his critique of Prime Minister Milojko Spajić, raising concerns over the government’s delay in addressing rising prices. Milatović questions why the government is postponing action until September, rather than taking immediate measures.

Prime Minister Spajić had previously assured that starting in September, the government would curb excessive margins in retail chains and ensure that price increases under “Eeurope Now 2” in October would be manageable for citizens. In response, Milatović has posed several questions to Spajić, including why the government plans to increase VAT on hotel accommodations, potentially harming the tourism sector, which represents 30 percent of the economy.

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Milatović also questioned the rationale behind raising VAT on restaurant food, which he believes pressures small and medium-sized businesses that are crucial to the economy. He further inquired about the proposed VAT increase on online shopping, books, and printed materials, arguing that these changes would make culture and education less accessible, and the increase in excise taxes on Montenegrin wines, which are an important local product and export.

In his statements on X (formerly Twitter), Milatović stressed the urgency of addressing the price increases immediately, rather than waiting until September.

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